U.S. Bancorp (USB) Outpaces Stock Market Gains: What You Should Know
U.S. Bancorp (USB) closed at $35.06 in the latest trading session, marking a +0.78% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.
Prior to today's trading, shares of the company had lost 26.82% over the past month. This has lagged the Finance sector's loss of 8.5% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from U.S. Bancorp as it approaches its next earnings report date. On that day, U.S. Bancorp is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 18.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.2 billion, up 29.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $29.49 billion. These totals would mark changes of +11.69% and +21.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for U.S. Bancorp. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. U.S. Bancorp is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, U.S. Bancorp is currently trading at a Forward P/E ratio of 7. For comparison, its industry has an average Forward P/E of 7.4, which means U.S. Bancorp is trading at a discount to the group.
Investors should also note that USB has a PEG ratio of 1.08 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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